Is Your Android Spying on You? Mobile Banking Compromised by Carrier IQ

It has recently come to light that major cell phone service providers like Sprint and HTC have been providing customers cell phones that come pre-installed with a smartphone tracking app, which runs undetected.

Now that millions of customers have discovered their phones have been tracking their every move with Carrier IQ, many are concerned about the security of personal data they enter, including mobile banking information.

Has Carrier IQ secretly been collecting sensitive private information like usernames, passwords and web history? How can you ensure you’re personal accounts aren’t compromised when accessing them from your phone?

What Is Carrier IQ?

Carrier IQ was created as a diagnostic tool to help smartphone carriers and manufacturers improve their services. It’s claimed to run on over 140 million devices. Sprint and HTC have already admitted to running the app, though it’s alleged that Carrier IQ has come pre-installed on many Apple, Samsung, Nokia and other major brand name cell phones as well.

Though the software is meant to improve customer experience, the fact that it runs hidden and doesn’t require consent from the phone’s owner has users who have been affected in an uproar. In fact, Samsung and HTC are accused of violating federal wiretapping laws by using the app and are facing class action lawsuits.

Trevor Eckhart demonstrates Carrier IQ’s alarming capabilities:

Uncertainty About Carrier IQ and What It Tracks

Due to the lack of transparency from this software company and the cell phone providers that partner with it, there is undoubtedly a lot of mistrust surrounding the smartphone tracking app.

One of the major concerns is that it has the ability to track keystrokes and web browsing history, thereby “seeing” personal information entered by users (like account passwords) and putting them at risk for smart phone identity theft.

However, Carrier IQ has insisted that the app doesn’t have the capability to track any of these things, and recently issued this statement:

“We measure and summarize performance of the device to assist Operators in delivering better service. While a few individuals have identified that there is a great deal of information available to the Carrier IQ software inside the handset, our software does not record, store or transmit the contents of SMS messages, email, photographs, audio or video. For example, we understand whether an SMS was sent accurately, but do not record or transmit the content of the SMS. We know which applications are draining your battery, but do not capture the screen.”

This seems to contradict the findings in researcher Trevor Eckhart’s video above. However, regardless of whether or not Carrier IQ is tracking keystrokes and practicing other potentially illegal surveillance, the simple fact that cell phone service providers have been running this smartphone tracking app without the knowledge or consent of customers is alarming in its own right.

How to Protect Your Mobile Banking Sessions

So how can you ensure your mobile banking sessions are protected from third-party eyes?

The truth is that accessing any kind of sensitive data, whether it’s your e-mails, bank accounts or personal contacts, is put at risk when you do it online. While Carrier IQ probably has the capability to see a lot more than you’d like, it’s up to the carrier to determine what types of information they want to obtain. Does Sprint have any interest in your personal photos, text messages or bank info? Not likely.

That said, online security is definitely a growing issue, but we regularly trade privacy and safety for the convenience and immediacy technology has to offer. So if you’re worried about the security of your personal banking information, there’s no magic solution to the Carrier IQ issue: The only surefire way to protect your finances and other personal information is to keep it offline.